PT  - JOURNAL ARTICLE
AU  - Joseph W. Bartlett
TI  - Public or Private? <em>A Review of the Eclipse of the Public Company in the Current Environment</em>
AID  - 10.3905/jpe.2011.14.3.007
DP  - 2011 May 31
TA  - The Journal of Private Equity
PG  - 7--15
VI  - 14
IP  - 3
4099  - https://pm-research.com/content/14/3/7.short
4100  - https://pm-research.com/content/14/3/7.full
AB  - The roster of publicly listed companies in the U.S. is in a steep decline—their “eclipse”the result of multiple causes. Nature abhors a vacuum, so the attractiveness of remaining private, with liquidity provided by secondary trading platforms, is growing remarkably. The root cause of the eclipse is discussed in a surprising piece by one of the chief stewards of shareholder rights, Delaware Vice Chancellor Leo Strine, shining the light on institutional investors who dominate trading on the NYSE and NASDAQ and whose strategy is akin to that of day traders. The issue discussed in the article, with help from Marty Lipton’s insights on “activists,” is how to fix the system so as to reward patient investors in public companies with extended time horizons.TOPICS: Private equity, legal/regulatory/public policy, portfolio construction, long-term/retirement investing